MIRA INFORM REPORT

Report Date :

30.05.2013

IDENTIFICATION DETAILS

Name :	INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED
Registered Office :	35^th Floor, Ocean Tower 2, 75/92 Soi Sukhumvit 19, Asoke Road, Klongtoeynua, Wattana, Bangkok 10110
Country :	Thailand
Financials (as on) :	31.12.2011
Date of Incorporation :	1987
Reg. No.:	0107537002451 [Former : BOR MOR JOR. 492]
Legal Form :	PUBLIC LIMITED COMPANY
Line of Business :	Manufacturer, Distributor and Exporter of Polyester Yarns
No. of Employees :	1,000

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

thailand - ECONOMIC OVERVIEW

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.

Source : CIA

Company name

INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED

[FORMER : TUNTEX [THAILAND] PUBLIC COMPANY LIMITED]

SUMMARY

ADDRESS : 35^th FLOOR, OCEAN TOWER 2,

75/92 SOI SUKHUMVIT 19, ASOKE ROAD, KLONGTOEYNUA, WATTANA, BANGKOK 10110

TELEPHONE : [66] 2661-6661

FAX : [66] 2661-6664

E-MAIL : solarn@indorama-th.com

info@indorama-th.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

EATABLISHED : 1987

REGISTRATION NO. : 0107537002451 [Former : BOR MOR JOR. 492]

CAPITAL REGISTERED : BHT. 2,226,220,000

CAPITAL PAID-UP : BHT. 2,202,850,000

SHAREHOLDER’S PROPORTION : THAI : 0.16%

FOREIGN : 99.84%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PUBLIC LIMITED COMPANY

EXECUTIVE : MR. SASHI PRAKASH KHAITAN, INDIAN

PRESIDENT & CHIEF EXECUTIVE OFFICER

NO. OF STAFF : 1,000

LINES OF BUSINESS : POLYESTER YARNS

MANUFACTURER, DISTRIBUTOR AND EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was initially established on April 16, 1987 as a private limited company under the registered name C.P.P. [Thailand] Co., Ltd. On July 30, 1987, the subject changed its name to Tuntex [Thailand] Co., Ltd., and was listed on the Stock Exchange of Thailand on September 15, 1993. Its status was converted into a public limited company on August 1, 1994 under the name TUNTEX [THAILAND] PUBLIC COMPANY LIMITED.

The subject received Board of Investment Promotion in producing synthetic fibre such as POY [Partially Oriented Yarn], Staple Fibre, Chip, DTY [Draw Textured Yarn] and SDY [Spin Draw Yarn]. It was a joint venture company among Taiwanese, Japanese and Thai investors.

On December 30, 2008, the subject registered for a change of its name to INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED, and revoked its name from the Stock Exchange of Thailand on April 30, 2009.

On July 28, 2009, Indo Poly [Thailand] Ltd., has been taken over by the subject, with total amount 1,487 million baht.

Presently, the major shareholders are Indorama Ventures Public Company Limited, and Indorama Holdings Co., Ltd., with holding around 64.94% and 34.62%, of the subject’s shares respectively. It currently employs approximate 1,000 staff.

CERTIFICATIONS

ISO 9001, ISO 14001, OHSAS 18001, CSR -DIW Certification, REACH compliance, Oekotex 100, Green label, ISO 50001.

The subject’s registered address was initially located at Room 1812, 18^th Floor, B.B. Building, 54 Sukhumvit 21 Rd [Soi Asoke], Klongtoeynua, Wattana, Bangkok 10110.

Later, the registered address was relocated to 35^th Floor, Ocean Tower 2, 75/92 Soi Sukhumvit 19, Asoke Rd., Klongtoeynua, Wattana, Bangkok 10110, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mrs. Suchada Sukphanthavorn		Thai	-
Mr. Khanit See		Thai	62
Mr. Aloke Lohia	[x]	Indian	54
Mrs. Suchitra Lohia	[x]	Indian	48
Mr. Sashi Prakash Khaitan	[x]	Indian	64
Mr. Ramesh Kumar Narsinghpura	[x]	Indian	52
Mr. Vachara Phanchet		Thai	51
Mr. Udey Paul Singhgill		Indian	59

AUTHORIZED PERSON

One of the mentioned directors [x] can sign on behalf of the subject with the company’s affixed.

MANAGEMENT

Mr. Aloke Lohia is the Chief Executive Officer of Group.

He is Indian nationality with the age of 54 years old.

Mr. Sashi Prakash Khaitan is the President & Chief Executive Officer.

He is Indian nationality with the age of 64 years old.

Mr. Ramesh Kumar Narsinghpura is the Chief Operating Officer.

He is Indian nationality with the age of 52 years old.

Mr. Ashok Arora is the Senior Vice President.

He is Indian nationality.

Mrs. Sunantha Larnopparat is the Human Resources Manager.

She is Thai nationality.

Mr. Markandey Shukla is the General Manager.

He is Indian nationality.

BUSINESS OPERATIONS

The subject’s activities are manufacturer, exporter and distributor of Polyester Yarn products, including Partially Oriented Yarn [POY], Draw Textured Yarn [DTY], Polyester Staple Fibre, Utra-Fine Polyester Fibre, as well as PET plastic resin, serving customers in the main end use markets of apparels, home textiles, automotive, and non-woven sectors with an extensive range of products for all sectors.

PRODUCTIONS

Polyester yarn : 285,000 tons per annum

Ultra-Fine Polyester Fibre : 196,000 tons per annum

PET plastic resin : 108,000 tons per annum

PURCHASE

Cotton/plastic resin and raw materials such as Mono Ethylene Glycol [MEG] and Pure Terephthalic Acid [PTA] are purchased from both local and overseas suppliers in Japan, Germany, Taiwan, Australia, India and Republic of China.

MAJOR SUPPLIER

Indorama Petrochem Limited : Thailand

TPT Petrochemicals Public Company Limited. : Thailand

SALES [LOCAL]

20% of the products is sold locally to manufacturers, wholesalers and end-users.

EXPORT [COUNTRIES]

80% of the products is also exported to Europe, Australia, Republic of China, Singapore, Taiwan, Indonesia and Middle East.

LITIGATIONS

Bankruptcy and Receivership

On December 15, 2003, the Central Bankruptcy Court has ordered Tuntex [Thailand] Public Company Limited [Debtor] to enter into business rehabilitation and appointed Tuntex [Thailand] Public Company Limited to be the Planner according to the lawsuit red case no. 2382/2546. As a result of such Court order, the power and duties in managing the business and assets of the debtor, including all legal rights of the company’s shareholders shall be vested in the Planner according to Article 90/25 of Bankruptcy Act B.E. 2483.

On September 10, 2004, the Court approved the rehabilitation plan and assigned Tuntex [Thailand] Public Company Limited to be the Plan Administrator. As a result of such Court order, the power and duties of the Planner shall be vested in the Plan Administrator according to Article 90/59 of Bankruptcy Act B.E. 2483.

On October 27, 2008, the Court has ordered a cancellation of company’s rehabilitation according to Article 90/70 of Bankruptcy Act B.E. 2483. As a result of such Court order, the power and duties in managing the business and assets of the debtor shall be vested in the management of debtor and shareholders.

Others

The subject has several litigations in relation to its normal course of business operation, but the management believes that it would not have significant affect on the company’s business.

PARENT COMPANY

Indorama Ventures Public Company Limited

RELATED AND ASSOCIATED COMPANIES

TPT Petrochemicals Public Company Limited

Business Type : Manufacturer of Purified Terephthalic Acid [PTA]

Tuntex Textile [Thailand] Co., Ltd.

Business Type : Manufacturing & distribution of fabrics

CREDIT

Local bills are paid by cash or on the credits term of 30-60 days.

Imports are by L/C at sight or T/T.

Sales are by cash or on the credits term of 30-60 days.

Exports are against L/C at sight or T/T.

BANKING

Bangkok Bank Public Co., Ltd.

[Head Office : 333 Silom Rd., Silom, Bangrak, Bangkok 10500]

The Siam Commercial Bank Public Co., Ltd.

[Head Office : 9 Ratchadapisek Rd., Ladyao, Jatujak, Bangkok 10900]

Krung Thai Bank Public Co., Ltd.

[Head Office : 35 Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok 10110]

EMPLOYMENT

The subject employs approximately 1,000 staff. [office & sales staff and factory workers]

LOCATION DETAILS

The premise is rented for operating administrative office at the heading address. Premise located in commercial/residential area.

Factory I is located at 6, I - 2 Road, Mabtaphut Industrial Estate, T. Mabtaphut, A. Muang, Rayong 21150. Tel: [66] 38 683-870-8, Fax [66] 38 683-883-8.

Factory II is located at 35/8 Moo 4, T. Khunkaew, A. Nakornchaisri, Nakhonpathom 73120. Tel : [66] 34 222-191-6.

ADDITIONAL INFORMATION

Indorama Ventures invested in strategic project to make 16,000 tons per year of high quality bi-component yarns, a specialty product in the fibers industry, at its recently acquired Indorama Ventures Indonesia (IVI) plant (formerly SK Keris) in Tangerang, Indonesia. IVI owns unique technology to make Bi-component yarns (known as FINNE) through a single step process. The company enjoys significant competitive advantage over companies who currently use a two step process and has secured a leading market share in this segment.

The product is a specialty line that is very popular for outerwear and has unique properties of drape and touch which few competitors can offer, giving it a good potential for growth. The bi-component and FINNE projects will both offer Indorama Ventures a higher margin and therefore boost its revenues and earnings while securing the company against any volatility in raw material costs.

It expected to commence operations in the first quarter of 2013, bringing its total new investments in Thailand and Indonesia to $85 million, which will provide further value-added specialties to its aspiration 2014 growth plan.

COMMENT

The company is a manufacture, distributor and exporter of polyester yarns. Economic conditions have not had a great impact on its business and the year ended with a record-breaking the year, which the results were remarkable. The fact is that cotton Inclement weather that can lead to crop shortages have meant that Polyester fiber is expected to continue to replace cotton and other natural fibers each year as there is no hindrance to the expansion of Polyester production while there is limited upside for cotton. As the world faces economic uncertainty, expect people to favor Polyester, the lowest cost material.

The company is a member of Indorama group, it is one of the largest producers of polyester yarns, expects to benefit from a continuous economic improvement in Asian country especially in China.

FINANCIAL INFORMATION

The capital was originally registered at Bht. 100,000 divided into 1,000 shares of Bht. 100 each.

The capital was increased later as followings:

Bht. 80 million on July 30, 1987

Bht. 600 million on December 28, 1987

Bht. 750 million on November 11, 1988

Bht. 900 million on November 22, 1989

Bht. 1,000 million on August 22, 1990

Bht. 1,500 million on July 21, 1992

Bht. 1,800 million on July 15, 1993

Bht. 2,100 million in 1996

Bht. 2,300 million in 1997

Bht. 2,800 million in 1998

Bht. 2,960 million on August 14, 2003

The latest registered capital was decreased to Bht. 2,226,220,000 divided into 2,226,220,000 shares of Bht. 1 each with Bht. 2,202,850,000 paid-up capital.

MAIN SHAREHOLDERS

[as at April 12, 2012]

NAME	HOLDING	%
Indorama Ventures Public Company Limited	1,430,636,976	64.94
Indorama Holdings Co., Ltd.	762,777,905	34.62
Mycene Holdings [B.V.I.] Ltd.	2,017,899	0.09
Others	7,417,220	0.35

Total Shareholders : 841

Share Structure

[as at April 12, 2012]

Nationality	Shareholders	No. of Share	% Shares
Thai	791	3,407,337	0.16
Foreign	50	2,199,442,663	99.84
Total	841	2,202,850,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Orawan Chunhakijpaisal No. 6105

BALANCE SHEET [BAHT]

The latest financial figures published as at December 31, 2011 & 2010 were:

ASSETS

Current Assets	2011	2010 [Adjusted]
Cash and cash equivalents	8,997,057	162,855,066
Trade account receivable	2,063,572,454	1,710,568,003
Inventories	2,555,157,095	2,114,259,587
Other current assets	458,609,609	279,294,944
Total Current Assets	5,086,336,215	4,266,977,600
Deposits at financial institution under restrictions	7,270,067	7,180,757
Property, plant and equipment	6,572,766,059	6,617,902,339
Intangible assets	9,137	329,738
Other assets	54,743,877	52,052,433
Total Assets	11,721,125,355	10,944,442,867

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2011	2010 [Adjusted]
Bank overdraft and short-term loans from Financial institutions	-	239,136,435
Trade account payable	1,635,985,272	2,557,010,863
Short-term loan to parent company	5,658,200,000	636,400,000
Current portion of long-term loan from bank	-	415,140,000
Current portion of long-term accrued interest under debt restructuring agreement	-	47,379,310
Current portion of finance lease contract Liabilities	12,460,420	12,502,030
Current portion of long-term payable for Machinery	11,459,484	10,906,668
Other Current Liabilities	406,569,822	301,129,896
Total Current Liabilities	7,724,674,998	4,219,605,202
Long-term loan from parent company	-	32,000,000
Long-term loan from bank	-	2,235,180,000
Long-term accrued interest under debt restructuring agreement	-	89,069,898
Finance lease contract liabilities	34,453,678	46,872,745
Capital budget allocations from demolition and restore of assets	143,311,579	106,152,761
Employee benefits obligation	57,890,794	-
Long-term payable for machinery	8,594,613	19,086,669
Total Liabilities	7,968,925,662	6,747,967,275
Shareholders' Equity
Share capital
Registered
2,226,220,000 ordinary shares of Baht 1 each	2,226,220,000	2,226,220,000
Issued & Fully Paid 2,202,850,000 ordinary shares of Baht 1 each	2,202,850,000	2,202,850,000
Share premium	96,495,000	96,495,000
Revaluation surplus on assets	1,173,733,478	1,342,198,767
Loss on insurance	[10,174,915]	-
Revaluation surplus of changes in values of investments invested by an associate	[907,144,640]	[907,144,640]
Retained Earnings Appropriated for statutory reserve	81,107,079	20,280,333
Unappropriated [Deficit]	1,115,333,691	1,441,796,132
Total Shareholders' Equity	3,752,199,693	4,196,475,592
Total Liabilities & Shareholders' Equity	11,721,125,355	10,944,442,867

PROFIT & LOSS ACCOUNT

Revenue	2011	2010 [Adjusted]
Sales	19,050,274,723	15,586,788,790
Interest income	2,697,157	1,186,088
Gain from exchange rate	65,870,812	79,067,803
Gain on accrued interest under debt restructuring agreement	111,088,273	-
Reversal of provision for loss from diminution	-	1,294,129,519
Gain from disposal of land, building & equipment	-	1,684,567
Other income	215,783,474	82,065,145
Total Revenues	19,445,714,439	17,044,921,912
Expenses
Cost of sales	17,904,464,064	14,291,158,976
Selling expenses	597,299,854	701,147,808
Administrative expenses	180,938,449	122,957,859
Loss on disposal of land, building & equipment	27,446,927	-
Executives’ remuneration	4,518,632	2,810,000
Financial cost	209,298,070	117,090,862
Total Expenses	18,923,965,996	15,235,165,505
Income [loss] before others	521,748,443	1,809,756,407
Estimated loss from mathematical principle of insurance	[10,174,915]	-
Revaluation of land, building and equipment	-	573,535,595
Net Profit / [Loss]	511,573,528	2,383,292,002

FINANCIAL ANALYSIS

ITEM	UNIT	2011	2010
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.66	1.01
QUICK RATIO	TIMES	0.27	0.44
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	2.90	2.35
TOTAL ASSETS TURNOVER	TIMES	1.63	1.42
INVENTORY CONVERSION PERIOD	DAYS	52.09	54.00
INVENTORY TURNOVER	TIMES	7.01	6.76
RECEIVABLES CONVERSION PERIOD	DAYS	39.54	40.06
RECEIVABLES TURNOVER	TIMES	9.23	9.11
PAYABLES CONVERSION PERIOD	DAYS	33.35	65.31
CASH CONVERSION CYCLE	DAYS	58.28	28.75
PROFITABILITY RATIO
COST OF GOODS SOLD	%	93.99	91.69
SELLING & ADMINISTRATION	%	4.09	5.29
INTEREST	%	1.10	0.75
GROSS PROFIT MARGIN	%	8.09	17.67
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.74	11.61
NET PROFIT MARGIN	%	2.69	15.29
RETURN ON EQUITY	%	13.63	56.79
RETURN ON ASSET	%	4.36	21.78
EARNING PER SHARE	BAHT	0.23	1.08
LEVERAGE RATIO
DEBT RATIO	TIMES	0.68	0.62
DEBT TO EQUITY RATIO	TIMES	2.12	1.61
TIME INTEREST EARNED	TIMES	2.49	15.46
ANNUAL GROWTH
SALES GROWTH	%	22.22
OPERATING PROFIT	%	(71.17)
NET PROFIT	%	(78.54)
FIXED ASSETS	%	(0.71)
TOTAL ASSETS	%	7.10

PROFITABILITY RATIO

Gross Profit Margin	8.09	Impressive	Industrial Average	8.04
Net Profit Margin	2.69	Impressive	Industrial Average	2.21
Return on Assets	4.36	Impressive	Industrial Average	2.63
Return on Equity	13.63	Impressive	Industrial Average	6.19

Gross Profit Margin used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. Gross Profit Margin is 8.09%. When compared with the industry average, the ratio of the company was higher. This indicated that company was more profitable than the same industry.

Net Profit Margin is the indicator of the company's efficiency in that net profit takes into consideration all expenses of the company. A low profit margin indicates a low margin of safety, higher risk that a decline in sales will erase profits and result in a net loss. Net Profit Margin ratio is 2.69%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient operator in a dominant position within its industry.

Return on Assets measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business. A low ratio in comparison with industry averages indicates an inefficient use of business assets. Return on Assets ratio is 4.36%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

Return on Equity indicates how profitable a company is by comparing its net income to its average shareholders' equity, ROE measures how much the shareholders earned for their investment in the company. Return on Equity ratio is 13.63%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

Trend of the average competitors in the same industry for last 5 years

Return on Assets Uptrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	0.66	Risky	Industrial Average	1.18
Quick Ratio	0.27
Cash Conversion Cycle	58.28

The Current Ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities. The company's figure is 0.66 times in 2011, decrease from 1.01 times, then the company may not be efficiently using its current assets. When compared with the industry average, the ratio of the company was lower.

The Quick Ratio is a liquidity indicator that further refines the current ratio by measuring the amount of the most liquid current assets there are to cover current liabilities. The company's figure is 0.27 times in 2011, decrease from 0.44 times, then the company has not enough current assets that presumably can be quickly converted to cash for pay financial obligations.

The Cash Conversion Cycle measures the number of days a company's cash is tied up in the production and sales process of its operations and the benefit from payment terms from its creditors. It meant the company could survive when no cash inflow was received from sale for 59 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.68	Acceptable	Industrial Average	0.57
Debt to Equity Ratio	2.12	Risky	Industrial Average	1.28
Times Interest Earned	2.49	Satisfactory	Industrial Average	2.97

Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. A lower the percentage means that the company is using less leverage and has a stronger equity position.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 2.5 higher than 1, so the company can pay interest expenses on outstanding debt.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.68 greater than 0.5, most of the company's assets are financed through debt.

Trend of the average competitors in the same industry for last 5 years

Debt Ratio Uptrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	2.90	Impressive	Industrial Average	1.67
Total Assets Turnover	1.63	Impressive	Industrial Average	1.11
Inventory Conversion Period	52.09
Inventory Turnover	7.01	Impressive	Industrial Average	6.34
Receivables Conversion Period	39.54
Receivables Turnover	9.23	Impressive	Industrial Average	6.00
Payables Conversion Period	33.35

Trend of the average competitors in the same industry for last 5 years

Fixed Assets Turnover Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.24
UK Pound	1	Rs.84.54
Euro	1	Rs.72.32

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.